The Department of Telecommunications (DoT) has returned a cumulative around Rs 6500 crore of bank guarantees (BGs) to and (Vi) over the last few days. This windfall for the telcos came after the government cut BG requirements against statutory dues such as licensee fees by 80%, in its latest relief package.
“Airtel has received about Rs 4,000 crore over the last few days,” said a person aware of the developments. Vi has received about Rs 2,500 crore.
Both the telcos did not respond to ET’s querties.
The BGs that are being returned were against license fees (LF) and spectrum usage charges (SuC).
Between Vodafone Idea and Bharti Airtel, the DoT holds some Rs35,000 crore in BGs, out of which guarantees of around Rs 13,000 crore are related to sub judice matters, as per industry estimates, which are also likely to be returned.
Return of BGs will add to the banks’ capital pool for the sector, allowing a cash-strapped telco like Vodafone Idea access to more loans as it seeks to invest in its 4G network to better compete with stronger rivals Reliance Jio and Bharti Airtel and stem its subscriber losses.
